India on the Path to 20% Ethanol in Fuel: Impact on Sugar Production

The Government of India announced that in February, the level of ethanol in fuel reached 19.68%, which is nearly in line with the planned target of achieving 20% by the end of 2025.

This is reported by AgroReview

The increase in ethanol production from sugarcane, along with a decrease in yields for the 2024/25 season, has led to a reduction in the projected sugar production in the country. The National Federation of Cooperative Sugar Factories of India (NFCSF) has lowered its production estimate to 25.9 million tons, down from the previous estimate of 26.5 million tons and significantly lower than last year’s figure of 31.9 million tons.

In light of this, to avoid a rise in sugar prices in the domestic market, the Government of India is considering revising its decision to reduce the allowed sugar export quota to 1 million tons for this season or decreasing the use of sugar for ethanol production, thereby lowering the share of ethanol in fuel.